Axis Bank shares rise nearly 7% as Q3 net profit surges three-fold

Shares of Axis Bank on Tuesday rallied nearly 7 per cent after the company reported a sharp three-fold jump in its consolidated net profit for the December quarter.

The stock jumped 6.76 per cent to settle at Rs 751.95 on the BSE. During the day, it rallied 7.18 per cent to Rs 754.95.

At the NSE, it gained 6.52 per cent to settle at Rs 750.55.

The company's market valuation jumped by Rs 14,608.78 crore to Rs 2,30,678.78 crore on the BSE.

On the traded volume front, 11.01 lakh shares were traded at the BSE and over 3.80 crore shares at the NSE during the day.

Axis Bank's consolidated net profit for the December quarter zoomed nearly three-fold to Rs 3,973 crore.

On a standalone basis, the third largest private sector lender on Monday reported a profit after tax of Rs 3,614.24 crore, as against Rs 1,116 crore in the year-ago period and Rs 3,133 crore in the preceding September quarter.

The bank's core net interest income grew 17 per cent to Rs 8,653 crore on the back of a 17 per cent loan growth and a marginal expansion in the net interest margin to 3.53 per cent, when adjusted for the benefit of a tax refund in the year-ago period.

Its non-interest income grew 15 per cent to Rs 3,344 crore, helped by a 16 per cent growth in the retail fees which now constitutes 65 per cent of the income line.

The overall provisions came down to Rs 1,334.83 crore for the bank, as against Rs 3,757.20 crore in the year-ago period, and the over Rs 5,000 crore in excess provisions for COVID were untouched.